Business
The Eastern Company Reports Second Quarter 2023 Results
New leadership team executing on its operational transformation program with results beginning to materialize.Cash flow from operations for the six months
About this update from Eastern Company (the)
[{"type":"text","content":"New leadership team executing on its operational transformation program with results beginning to materialize.Cash flow from operations for the six months ended July 1, 2023 increased by $16 million as compared to the same period in 2022.Secured $60 million term loan, $30 million revolver, and $75 million accordion for future acquisitions.Declared quarterly cash dividend of eleven cents ($0.11) per share to common shareholders, representing the Company's 332nd consecutive quarterly dividend.SHELTON, CT / ACCESSWIRE / August 8, 2023 / The Eastern Company (\"Eastern\") (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving commercial transportation, logistics, and other industrial markets, today announced the results of operations for the second fiscal quarter ended July 1, 2023.President and CEO Mark Hernandez commented, \"Our four-pronged strategy - based on disciplined operations, optimum capital utilization, focused commercial business, and value-adding acquisitions - continues to be the foundation for all our actions. In May 2023, we announced plans to close Associated Toolmakers, Ltd., our European mold tooling service facility, which did not align with our goal of focused commercial operations and restoring consistent profitability and recorded $1.4 million in costs associated with exiting that business. In June 2023, we acquired certain assets of Sureflex, Inc., a manufacturer of tractor-trailer electrical connection cable assemblies, to enhance the operating performance and efficiency of our Velvac production facilities.Mr. Hernandez continued, \"During the second quarter, we continued executing the operational transformation program we began implementing when I stepped into the CEO role in January 2023. Our financial results for the quarter continue to demonstrate the early impact of the many actions we are taking to enhance Eastern's operating efficiency, reduce costs and strengthen the Company's focus on delivering value to shareholders. On a sequential quarter basis, gross margin increased from 21% to 22%. On a year-over-year basis, our backlog as of July 1, 2023 was down 9% to $75.3 million as we continue optimizing our supply chain to reduce past due orders and transition from old to new programs with our commercial vehicle and automotive customers and increased shipments to our customers.\"...